You have been approached by a new client who is an owner of Historical Monuments in the border between Malawi and Mozambique to assist in insurance claim. One of the client's Museums was affected by Cyclone Ida on 1June 2018. The Museum has a gift shop and cafe - all the inventory (refreshments, souvenirs/guidebooks/DVDs etc.) were destroyed by the flood. The Museum was closed for two months following the flood. You have made some enquires. Following these initial enquiries, you have obtained the management accounts for the centre for last year and you have written down some notes. A summary of the management accounts for the year ended 31 March, 2018 shows the following: K'000 Admission revenue (Note 1) Museum/Café revenue (Note 1) Museum/Café Cost of sales (Note 2) 210 160 72 Museum/Café inventory at 1 April, 2018 (Note 3) 24 Operating expenses (Note 4) 240 Notes 1. Revenue in the current financial year starting 1 April 2018 is up by around 15%. 2. Museum/café gross margins have risen by around 5% 3. Museum/café inventory turnover rate is unchanged - i.e. 4 months inventory is always held. 4. Three quarters of the operating expenses are fixed. 5. The flood caused considerable damage to the land and buildings. It is estimated that these will cost around K200,000 to be repaired. The Museum's management have decided to make some extra improvements to the premises totalling K50,000. 6. The Centre reopened on 1August 2019. The Museum's management are worried that some visitors will not return and suggested the following plan: a. Extra marketing spend costing K40,000. b. 20% discount voucher to all Museum visitors in August 2018. The voucher is valid in the café and gift shop. It's estimated that sales 3/4 of café/Museum sales in august will be at the discounted price. c. Free Museum tour for all visitors in August. This will be supplied by two retired local amateur historians who will charge K120 (in total) per day for their services. 7. The Museum has the following insurance cover: • Inventory K10,000 (K1,000 excess on any claim) ⚫Los of profits K50,000 (K5,000 excess) • Land and buildings 110f 23.000 DO 3,000 excess)​